Few Steps To Avoid Losses In Trading.

[DoublerHunter]

Summary: Your profit must be greater than your losses if your a good trader so trade with wisdom.

This is the main goal of every trader, to become more profitable every end of the year despite of their losses and this only proves that it’s not always about profit in trading sometimes your consistency matters and when you do follow a good trading strategy you can be successful at the time you set-up your target goal.

~snip~

^ Though it is easy to say and I think it is tougher to maintain that goal.
You are right, it is not all the time you will have profit in trading, sometimes you will encounter a failure that makes you learn from it and avoid it in the future. If you have consecutive losses while in trading, it means you are not ready yet to trade, you just need to research and improve your skills and knowledge in trading so that you can achieve your goals. This is a common mistake by new traders, they think that trading is very easy to make a profit but actually it is not, this mindset should be corrected.

[Franctoshi]

You've made quite a good number of points but one thing is certain, despite taking all this good measure in place,
A loosing trade will always be loosing trade irrespective of any measure taken to ensure you avoid loses.

  In addition to what you've said so far, it's nice to guide your funds using this guidelines so you don't incur loses more than you should loose.

[logfiles]

Bitter truth here, even if you are a professional or a very experience day trader or intraday trader, you can never have 100% win rate in all of your trades. At least some traders will be lost, especially if your stop loss is tight.

When trading, it's more important to think about the possible risk rather than the profit so that one can manage risk well and also have a good risk reward ratio.

[worle1bm]

Let me add one more

Do not trade with shitcoins

If you trade with shitcoins, it can be the beginning of losses, if the trade does not favour you, you could have lost most of your trading funds until you realize what shitcoins are.

Some coins are also just like not rising during bull run but continue to be stagnant or fall, until the bear crypto begin and the shitcoin continue to fall more than others. That would indeed be a pain in the ass.

Most people find it tempting to invest in some shill projects that over promise under deliver to the investors and are setup with the aim of scamming people.They need to stay away from them as it's not going to give any return to them but still they become greedy or invest under the paid promoters influence and loose their funds.This is important step in trading to stay away from them.

[so98nn]

Let me add one more

Do not trade with shitcoins

If you trade with shitcoins, it can be the beginning of losses, if the trade does not favour you, you could have lost most of your trading funds until you realize what shitcoins are.

Some coins are also just like not rising during bull run but continue to be stagnant or fall, until the bear crypto begin and the shitcoin continue to fall more than others. That would indeed be a pain in the ass.

Well with OP stated (mastering and stuff) I dont think any type of coin could make us loose the money? I mean thats the whole point here, you master yourself with proper trading analysis theory and practices and then jump into the market.

In fact peeps are literally using shitcoins as the best way to earn money as they are easy to buy and sell if the volumes good and price is tiny! Such coins are easy to drop off.

At that trade bulk buys matter a lot rather than more money and less coins.

However, at the end of day its up to the trader how they perform and whats the status of market.

[Ararbermas]

when asked the reasons behind their losses they have always responded by saying this,( bad luck).

Bad luck? Well for me it means he rely on his luck when it comes trading and don't have enough knowledge and strategy in order to win and to minimize losses.
If that so, or if i am on that situation, probably i will stop trading because surely you will end up massive losses afterwards.

Summary: Your profit must be greater than your losses if your a good trader so trade with wisdom.

Correct, that's why all traders must have risk management so that despite of losses you can still regain and have a profits at the end of day of trading.

[Charles-Tim]

In fact peeps are literally using shitcoins as the best way to earn money as they are easy to buy and sell if the volumes good and price is tiny! Such coins are easy to drop off.

It depends on what you regard as shitcoins.

Shitcoins are coins that become tradable in the market, but later its liquidity reduce. It will get to a point order will not be filled in time, if market order is used, it will lead to loss. If theree is bull market, shitcoins may have very little growth or no growth or can even decline during the time. If there is bear market, shitcoin will fall most. A coin that have no value than to make someone that bought it to lose are called shitcoins. Shitcoins are also coins that are very prone to become a dead coin.

[ethereumhunter]

The reason why traders don't make profits is because they still need to learn more about trading many of them choose obscure coins simply because they read things that promise huge profits if they invest in those obscure coins. Only continuing to learn to analyze can help them to profit and trade with coins that have the potential to increase in the future. If indeed we do not have sufficient skills to trade, we should not use a large balance because it can create a large risk of loss. So keep trying to learn and practice it is something we must pay attention to.

[uchegod-21]

You've made quite a good number of points but one thing is certain, despite taking all this good measure in place,
A loosing trade will always be loosing trade irrespective of any measure taken to ensure you avoid loses.

  In addition to what you've said so far, it's nice to guide your funds using this guidelines so you don't incur loses more than you should loose.

"A loosing trade will always be loosing trade irrespective of any measures taken to endure you avoid loses." This statement is correct because all these measures is to mitigate loses and not to avoid loses totally.
I read where you said that when you applied all your strategies and tools and in the end the trade still fails, that you will happily walk away and know that you have done your own part but the market didn't agree.
Everyday is not a win day for even good and professional traders, there's always a bad day in the market.

[GiftedMAN]

...

Without a doubt this is good advice, I will also say that having a defined level in which you will not tolerate more losses and cut them, also known as a stop loss, is very important if you plan to make money for the long term on this market, and the reason for this is simple, many traders do not like to admit they did anything wrong and when they are facing some losses instead of closing their trade they keep it open expecting for a reversal, and when it happens and they avoid losing a small amount of money they are happy about it, but eventually they will find out that the market does not always makes a reversal and instead of the price plummets, and that is when they lose a massive amount of money.

Thanks for encouraging me and adding more useful information to this post. Traders who take calculated risks in trading make more profit but they also encounter losses but manage it with the help of stop loss which you mentioned here. Knowing when to close a trade and when to start trading again will also help to reduce losses.

[GeorgeJohn]

The primary determination of every trader is to make profit, no trader have it in mind of adventuring into lose. Except the trader don't know the elementary rudiments of trading, so therefore i will encourage any trader to understanding the foundation of trade before trading. And besides what actually causes lost for traders is not only the platform they trade but out of greediness and overwhelmed to possessed what is greater.

[Rufsilf]

This is what caught me...

Note: Learn To Earn.

Do learning today and start to earn by tomorrow. The majority and most of the newcomers neglected to prioritize this thing but instead jumped on actual trading because they think it was easy. That was a wrong mentality that we usually observe and then blame the market for their own mistakes. Apparently, they are making themselves terrible by underestimating the market.

We can't deny that losses will certainly happen to us as starters but have to correct this.

[palle11]

If indeed we do not have sufficient skills to trade, we should not use a large balance because it can create a large risk of loss. So keep trying to learn and practice it is something we must pay attention to.

This is instructive as always trading with little capital takes away pressure of high risk from you. You don't feel too much pain when you lose because you still have some money to try again. Trading is risky and no matter how experienced someone is, the possibility of losing is not taking away from any trade, being wise to manage risk is experience itself.

[CryptocurencyKing]

Over the years I have come in contact with so many traders and 65% of them have always complained about not making a profit in their trading when asked the reasons behind their losses they have always responded by saying this,( bad luck).

Haven't singled out the bad luck idea associated with trading or though, it is some reply gotten out of whatever survey, its no mystery why these traders involved in that survey had been failing.

Having the single idea that trading have got anything to do with luck at all is a misconception. It somehow relates trading to gambling and that is so wrong. Trading is infact, 90% technical and fundamental analysis. Hence, its gotten a verifiable pattern to it. The other 10% accounts for the unseen factors that could result in a sudden change in trend. The part where you do not see to analyse.

To reduces loses in trades because, it can't be completely mitigated, one needs to study trading and master a strategy. While, checking out for emotions, risk management practices and having a trading plan. It helps you to stay on course.

[Mpamaegbu]

OP, your points are apt and that's true to be successful in trading those salient points must be adhered to. However, you should also have to add a complete control of "emotion" during trading. Lack of self control over one's emotion will mess up an entire good trading plan.

these shitcoins makes really awesome movements which is what actually attracts traders to them. It's a dilemma.

Exactly! You can't compare the level of volatility of such tokens to that of Bitcoin. They give better ROI than Bitcoin and can only be less risky to trade them on short term. Anything short of that isn't advisable. We've to remember that there are many investors who have good memories of them just the same way a lot of others also have sad and regrettable memories of why they invested in them.

[Cling18]

To sum it up, knowledge and wisdom about trading are too important if we want to succeed. Trading is too broad so we have to study about its fields. If we're fully equipped with the knowledge, we'll be able to apply different strategies and even deal with every market situation. Also, having the proper mindset is important so we'll know how to make the right decisions wisely.

[Emitdama]

Bitter truth here, even if you are a professional or a very experience day trader or intraday trader, you can never have 100% win rate in all of your trades. At least some traders will be lost, especially if your stop loss is tight.

When trading, it's more important to think about the possible risk rather than the profit so that one can manage risk well and also have a good risk reward ratio.

Trading is treated same as gambling. They have huge risks and guaranteed earnings at all times are not possible with them. If only a 100 percent win rate is possible, all of us are now going to switch to trading and all of us are going to be rich in no time. If one's stop loss is tight, that means that he will only lose less but a small loss is still considered as a loss although it can be easily recovered.

It's better if one can also think about the risk and the possibility of losing other than thinking of profits so that he will still remain to be realistic and won't feel bad if ever the trade turns out to be a lose. This will also prevents them from being greedy.

[logfiles]

Trading is treated same as gambling.

I don't think trading should be likened to gambling, especially if someone is not entirely relying on only probability like some dice games.

If trading is treated as gambling then everything we do on this mother other that involves risk and losses at times should be considered gambling too like investing in Real estates, Investing in education, etc

[Viscore]

Over the years I have come in contact with so many traders and 65% of them have always complained about not making a profit in their trading when asked the reasons behind their losses they have always responded by saying this,( bad luck). You can not make profit in trading without observing the trading rules.

Here Are A Few Steps To Avoid Losses In Trading:

1) Have good knowledge about Trading: In order to avoid losses in trading, I advise every trader and those intending to venture into trading to get knowledge of trading first before trading. Go for online classes(Youtube) for a pre-trading experience, register for mentorship classes, and onsite classes for a fast and better understanding.

Note: Learn To Earn.

2) Trade With Well Known Trading Platforms Only: To avoid losses as a trader, ensure you trade with the recognized trading platforms, e.g, Bitfinex, Binance, Huobi, Coinbase, Bittrex, kucoin, be careful and don't trade with an unfamiliar trading platform.

Note: Walk with the wise you become wiser.

3) Master Your Trading Strategy: Traders who make huge profits in trading have one secret which they do not share that is their trading stategy. They master one trading pattern and they work with it, when you master your strategy, you will trade with confidence you will jump around looking for signals or analysis before trading.

Note: Stick to what works for you.


4)  Understanding The Power Of Risk Taking: As a trader, taking a risk in trading is good but knowing when to take the risk is better, so many traders lose money in trading because they believe that everything about trading is risk-taking no, you only take cross-examined and calculated risk only in trading this will help you to stop even when your profit margin is high.

Note: We trade to grow not grief.

Summary: Your profit must be greater than your losses if your a good trader so trade with wisdom.

That is the main reason you trade (Profit). Any trader who does not make profit in trading should go back to the drawing board and get more trading knowledge, you can not regard yourself as a trader when you lose funds every day. Just like the op said, learn to earn.

Learning in trading is the most basic rule a good trader needs to do before he engage himself in real trading. However, newbies tend to forget this, but they always believe in a lot of speculations without finding the facts first. Because of how they see trading as a quick rich scheme, they always fall for losses. And losses in either way becomes inevitable in trading, but at the end of the day, a good trader should learn to overcome his losses and maximize his market gains so he can sustain trading.

[AakZaki]

Let me add one more

Do not trade with shitcoins

If you trade with shitcoins, it can be the beginning of losses, if the trade does not favour you, you could have lost most of your trading funds until you realize what shitcoins are.

Some coins are also just like not rising during bull run but continue to be stagnant or fall, until the bear crypto begin and the shitcoin continue to fall more than others. That would indeed be a pain in the ass.

True, shitcoin has no basis of trust. They are just hype, though not all. Betting on shitcoin is a gamble that has no solid foundation. There are two possible, profit and loss but may be mostly losses. If you are not ready to lose then do not buy shitcoin. Many people are just speculating against shitcoin he chose it like gambling.
If it keeps going up then it will be very strange you have to be wary of it could be just manipulations like Squid Game. Then many altcoins that go up and down it will be a little reasonable because it is crypto like that, by utilizing it we can benefit.